The following analysis has been used by the
Commission as part of its price adjustment methodology and is
provided here to assist the public in understanding some of the
background factors influencing current market prices.

Crude Track:

Recent Crude (US$/bbl)

WTI

Brent

Dec 16

$ 55.93

$ 59.86

Dec 17

$ 56.47

$ 61.18

Dec 18

$ 54.11

$ 59.27

Dec 19

$ 56.52

$ 61.38

Dec 22

$ 55.26

$
60.11

Dec 23

$ 57.12

$ 61.69

Dec 24

$ 55.84

$ 60.24

Dec 29

$ 53.61

$ 57.88

Dec 30

$ 54.12

$ 57.90

Average
Brent Crude for December:
$ 63.75.

West Texas Intermediate

Average

Average

Average

2014

2013

2012

January

$ 94.73

$ 94.70

$100.51

February

$100.57

$ 95.50

$102.26

March

$100.46

$ 92.73

$106.36

April

$102.15

$ 89.59

$103.18

May

$101.79

$ 94.93

$
95.47

June

$105.14

$ 95.76

$82.28

July

$102.39

$104.68

$87.93

August

$ 96.08

$106.49

$
94.05

September

$ 93.03

$106.24

$
94.74

October

$ 84.52

$100.74

$
89.72

November

$ 77.55

$ 94.00

$
85.87

December

$ 59.82

$ 97.87

$
88.06

US $
Per Barrel

CDN
Cents
Per Litre

CDN Cents
Per Litre

CDN Cents
Per Litre

CRUDE

RUL

F/O

DIESEL

Dec 30/14

$ 54.12

99.9

91.3

122.9

Dec 30/13

$ 99.29

129.5

113.3

149.5

YOY Diff.

-45.17

-29.6

-22.0

-26.6

% Change

-45.5%

-22.9%

-19.4%

-17.8%

Commentary:

Despite occasional
one-off upward exertions of pressure, (i.e. report of strong
U.S. GDP growth and geopolitical related supply disruptions
in Libya) oil prices continue to languish in the mid $50.00
per barrel range. Indeed, amid speculation that a
current global supply glut will continue through the first
half of 2015, crude futures are currently trading at their
lowest level in more than five years. With OPEC's
recent decision not to cut production quotas, coupled with
the continued growth of domestic U.S. production, global
supplies continue to outpace demand.

In
related fashion refined product market prices continue to
fall as well. Both gasoline and diesel futures and
pump prices are currently trading at their lowest level
since May of 2009.